This chapter contains these topics:
Services can require specific cost-markup rules and precise audit trails. Many services involve work that requires different combinations of time, burden, equipment usage, materials, and recurring billings.
You can use the features of the Contract Billing system to:
Identify and mark up costs for T&M transactions
Assign contract information to Billing Workfile (F4812) transactions
Generate invoices
Design printed invoices to customer specifications
Create accounting entries for costs, revenue, and billings
With Workfile Generation, the system accumulates the billable costs for time and materials. During the generation, the system:
Identifies the accounts eligible for billing
Updates the records in the Account Ledger (F0911) as billed or non-billable
Creates workfile transactions in the Billing Workfile (F4812)
Assigns contract information to the workfile transaction
Marks up the source transactions
Calculates the applicable tax amounts
Calculates revenue for lump sum and unit price billing lines, if applicable
The system uses journal generation programs to create:
G/L journal transactions for revenue recognition
G/L journal transactions for cost allocations, if applicable
Revenue calculations for fees, if applicable
A/R and G/L journal transactions for billing
You use the Contract Billing system to identify and invoice the T&M costs for the services and goods you provide. You can also invoice for non-T&M billing terms, such as lump sum, unit price, and milestone billing lines. The billing process includes:
Generating invoices
Reviewing/changing billing amounts on invoices
Printing the invoices
Processing the invoices into Accounts Receivable
The system accumulates Billable cost based upon the Contract Billing system constants and rules you define. System constants control the global processes for the Contract Billing system, such as the processing of costs, customer information, and dates. The system rules define markup and accounting information. You can also design the layouts that the system uses to print customer invoices.